Oil prices rise on encouraging economic news from USA, Europe, Asia

24-Oct-11

Encouraging economic news from USA and Europe point to stronger demand in the months ahead, propping up oil prices. Crude on the Nymex rose by over 2% to US$88, while Brent crude rose to US$111 in London. Finance Minister in Europe met in Brussels on plans to control the region's debt crisis. US government figures indicate a fall in unemployment rates for September in half of the states, indicating improved hiring. Oil crossed US$88 a barrel in Asia amid signs of resilience in the economies of Japan and China. Japan's Finance Ministry reported a 2.4% rise in September 2011 vs September 2010, marking the second consecutive month of growth as the country recovered from the March earthquake and tsunami. HSBC’s preliminary China Manufacturing Purchasing Managers Index, which measures industrial production, rose to 51.1 from 49.9 in September.